Saving is important for economic growth because
A. a higher saving rate increases investment spending.
B. a higher saving rate will decrease the standard of living in the future.
C. a higher saving rate reduces investment spending.
D. more saving increases consumption immediately.
Answer: A
You might also like to view...
How did the international monetary system influence macroeconomic policy-making and performance during the post-World War II years during which exchange rates were fixed under the Bretton Woods agreement (1946-1973)?
What will be an ideal response?
Suppose when the price of calculators is $18, the quantity demanded is 90, and when the price is $22, the quantity demanded drops to 70. Using the mid-point method, the price elasticity of demand is:
A. 1.25 B. 25 percent C. 20 percent D. 25
Tie-in-sales require that a customer who buys one product (the tying good) must also ______.
a. pay switching costs to change from one brand (the tied brand) to another brand b. buy a greater quantity of the tying good because many other consumers are buying it c. buy another product (the tied good) that the customer needs to use the first product d. pay more for it than would be charged by a competitor selling the same tying good
Which of the following will cause the Phillips curve to shift to the left?
A. Job search assistance. B. Increasing the marginal tax rate on excess profit. C. Increasing regulation in the economy. D. Attacks by terrorists.